usda donated food distribution program purpose of this handbook is to help explain the usda donated...

‘13-‘14

Food Service

Directors’ Guide

USDA DONATED FOOD DISTRIBUTION PROGRAM


DESE School Food Services

Table of Contents:

Introcuction…………………………………………………………………………………………………………………………………Page 3

Entitlement……………………………………………………………………………………………………………………….…………Page 3

Commodity Purchasing………………………………………………………………………………………………………………..Page 5

Open Order/Brown Box Commodities………………………………………………………………………………………….Page 7

Processing…………………………………………………………………………………………………………………………………….Page 8

Donated Food Delivery…………………………………………………………………………………………………………………Page 10

Contact Information……………………….…………………………………………………………………………………………...Page 12



The Donated Food Program was introduced in the early 1930’s to help

America’s farming community as they were suffering from the economic upheaval of the Great

Depression. At this time in our Nation’s history, many individual American farmers had lost or were

losing their farms. Many farmers were purchasing more acreage to plant more crops to make up for the

poor market prices – thus further depressing market prices. At the same time millions of people in cities

lost their jobs and were without means of support for themselves and their families. The danger for

malnutrition among American children soon became a national concern.

The Missouri Department of Elementary and Secondary Education, School Food Services

Section, acts as an administrator for the United States Department of Agriculture’s (USDA) Donated

Food Distribution Program for all the Local Educational Agencies (LEA’s) in Missouri. The Donated Food

Program allows the USDA to assist LEA’s in meeting the nutritional needs for school children throughout

the nation. To aid American farmers, the USDA buys food and distributes that food through various

eligible food outlets.

The purpose of this handbook is to help explain the USDA Donated Food Distribution Program in

Missouri, and to provide guidance information to schools who participate in the program.

The Missouri Department of Elementary and Secondary Education (DESE), School Food Services

(SFS) makes it very easy to become a part of the UDSA Donated Food Distribution Program. All

nonprofit public and private Local Educational Agencies (LEA’s) participating in the National School



Lunch Program are eligible to participate in this program. To enroll all that you need to do it contact our

office and we will get you started! The only way that your LEA is not eligible to participate in the USDA

Donated Food Distribution Program is if your LEA has a vendor contracted to prepare your school

lunches (vended contract).

Schools are eligible for specific dollar levels of commodity assistance based on a formula which

multiplies the total number of lunches served during the year (July 1st through June 31st) by a mandatory

rate of assistance, Ex. (11,500 total lunches served X $.2275=$2,616.25 of entitlement /year). Though

this amount of entitlement is a set amount designated to LEA’s by DESE, it is essential for schools to take

advantage of the amount given to them. The entitlement should be more

looked at as a fictitious number. It is ok to over spend your entitlement. If

the Missouri state’s entitlement is overspent, it will roll over, and deduct

from the next year’s entitlement.

In order for LEA’s to find out what entitlement they can expect to receive, each year DESE

complies information from each LEA’s lunch program (total lunches served multiplied by the mandatory

rate of assistance), and fill out Entitlement Letters for each LEA. These entitlement letters are posted to

the DESE School Food Services, Commodities web page and are very user friendly. All that you need to

know is your LEA’s agreement number. From there just find your information. These entitlement letters

show you how much entitlement your LEA will be receiving to spend on USDA commodities.

At the end of every year the Missouri Department of Elementary and Secondary Education

(DESE) puts together a document allowing LEA’s to view exactly how their entitlement was spent and

what that valued. This form is called the Valued Commodity Form. This document is a very useful tool

that allows LEA’s not only to see exactly what value they were able to save by using the Donated Food

Program, but this can also be used as a tool for the next years ordering.

http://www.dese.mo.gov/divadm/food/EntitlementLetter.htm

http://www.dese.mo.gov/divadm/food/ValueofCommodities2011-2012.html



Commodities are allocated to Local Education Agencies (LEA’s) by the State Distributing Agency

(SDA) based on the total number of reimbursable lunches served to students during the previous school

year. Although the number of reimbursable breakfast meals is not a part of

the allocation formula for commodities, commodities may be used for

School Breakfast Programs. These commodities may also be used for the

after school snack program, Family and Consumer Science (F.A.C.S.) classes,

or for any other educational purpose as long as they are not being sold for a

profit. The DF regulation 7 CFR part 250.48 (g) states that “School food

authorities receiving donated foods under this part may use such foods for

the purpose of training students in home economics”.

USDA commodities are broken down into three distinctive categories:

1. Group A: Fruits, vegetables, meats, and poultry

2. Group B: Grains, oils, and dairy products

3. Bonus: Are made available to LEA’s by the USDA because of an extreme surplus

of a commodity. (Group A or Group B foods may be classified as “bonus”)

Group A commodities typically make up approximately 70 percent of Missouri’s commodity value

entitlement and Group B makes up for the remaining 30 percent. The Bonus commodities that the

USDA makes available are not charged against the state of Missouri’s entitlement.

http://dese.mo.gov/divadm/food/PDF/250_07_donatedfoods.pdf



These commodities become available to LEA’s from the USDA through the Missouri Department

of Elementary and Secondary Education, School Food Services. Annually, DESE – SFS (School Food

Services) completes an order and submits it to the USDA – FNS (Food Nutrition Service). The Food

Nutrition Service (FNS) is a department within USDA. FNS handles all children nutrition programs on the

federal level. The FNS receives the orders of what commodities the state of Missouri will need and in

what amounts we will need them in. The orders are normally due in February or March and are for the

upcoming school year. The DESE – SFS has to project how much donated commodities the state will

need. This process is done in two ways:

1. For processed commodities DESE – SFS compiles the information given by LEA’s

from the processing packets.

2. For monthly order items, DESE – SFS forecasts how much commodities will be

needed based on trends from the previous year’s commodity totals.

The next step in this whole process is for USDA – FNS to purchase the raw commodities. After

the amount of raw commodities are purchased, the FNS (Food Nutrition Service) then takes Group A raw

commodities (i.e. fruits, vegetables, meats, and poultry) and allocates them to the

Agriculture Marketing System (AMS), and take the Group B raw commodities (i.e.

grains, oils, and dairy products) and allocates them to the Farm Service Agency

(FSM). The Agriculture Marketing System (AMS) and the Farm Service Agency (FSA)

are Departments within the USDA that are the purchasers of the raw commodities

that the State of Missouri orders. Commodities are next sent to either a designated processer to fill

processor packet orders, or sent directly to SDA – DESE to be directly distributed to the LEA’s.



Another way that the State of Missouri (DESE-SFS), allows LEA’s to take advantage of the USDA

Foods Program is by way of the use of the monthly Open Order Form or “Brown Box” commodities.

Every year DESE-SFS sets aside an amount of entitlement that the LEA’s never see. This entitlement

amount is used to purchase commodities that the USDA offers – thus allowing DESE to have a monthly

Open Order Form. DESE – SFS doesn’t have any control over what the USDA makes available for us to

purchase, so commodities may differ from year to year. Another disclaimer about the commodities you

will receive from the Open Order Form is sometimes the product will be sent from a different processor

than you may have received it from before. The reason is because USDA puts these commodities out for

bid, and whichever processor/producer submits the lowest bid receives the bid and therefore is the

processor/producer the LEA’s will be receiving product from.

It is very important that each LEA takes advantage of this opportunity given to them. Filling out

the Open Order Form is very easy, and needs to be checked at the beginning of every month (because

Open Order Forms change monthly). On our DESE – SFS website from the 1st of each month through the

15th, every LEA has access to open and complete the Open Order Form. This form becomes available in

June and will continue to be available through March for LEA’s to fill out. LEA’s need to open and fill out

the Open Order Form, and email it to our office [email protected] , two months in advance to

when the product will be delivered to them, EX. (if you want to receive an Open Order delivery in

August 2012, then you would need to submit an Open Order Form in June 2012). The Open Order

Form needs to be submitted to the DESE-SFS office no later than the 15th of each month. This product is

completely “FREE” for the LEA’s to use. There isn’t any processing/shipping fee involved with the

delivery of these products.

http://www.dese.mo.gov/divadm/food/Commodities_Index.html

mailto:[email protected]



USDA began the Processing Program in 1958 to permit State Distributing agencies and eligible

recipient agencies to maximize the use of donated commodities. Most of the commodities processed

through these programs go to schools participating in the National School Lunch Program. The

processing of donated foods allows State distributing agencies to contract with commercial food

processors to convert raw, bulk USDA commodities into more convenient, ready-to-use end products.

Processed commodities become available to the end recipients (the LEA’s), by way of processing

packets. These processing packets are processor designated order forms that are sent out to LEA’s

annually in the end of December and returned completed to DESE – SFS in late February thru March.

These order forms are then complied by DESE – SFS, put into an excel document, and sent off to the

processors. With these order forms, it allows DESE – SFS to know how many pounds of raw

commodities to order from USDA.

DESE – SFS takes pride in being able to offer a wide variety of processed commodities to our

LEA’s in the state of Missouri. For that reason DESE – SFS has a very good way of implementing new

processed commodities to the LEA’s. Often, DESE – SFS is contacted by a processor wanting to process

commodities for the state of Missouri. DESE – SFS then sends that processor a marketability survey and

that is sent to every LEA in the state. This marketability survey allows:

1. The processor to contact each LEA in the state.

2. The LEA to decide if they would use a portion for their entitlement for the new

product or not.



3. DESE – SFS the ability to assess whether the processor should be introduced or

rejected to process USDA commodities.

The LEA’s then receive the marketability survey from the processor. After it’s completed it is

then sent back to the processor. The processor/broker next sends the completed surveys to DESE – SFS

and based on the feedback (positive or negative); a decision is made by DESE – SFS to either introduce

the processor to process Missouri USDA Foods or to reject their request.

There are several ways to become familiar with the products that each processor offers within

their processing order forms. Throughout the year, DESE – SFS, the Missouri School Nutrition

Association (MSNA), and the Commercial Distributer host food shows. Annually, DESE – SFS hosts three

expo shows that allow us to meet with all of the food service directors, and also allows food service

directors to explore some processed foods. These meetings take place in three different locations (one

in central, one in eastern, and one in western Missouri), allowing food service directors from all areas

the opportunity to join DESE – SFS. Not only are these food expos a great way

to explore new processed foods, but they are also a good way of creating a

networking system between food service directors. The Missouri School

Nutrition Association (MSNA) hosts an annual food show allowing LEA’s to

seek more processed commodities. This food show is normally in the fall and

located in different areas of Missouri. Commercial Distributers food shows are

hosted throughout the year. To find out more information about these shows, ask your distributer

representative and they will have more details for you.

DESE – SFS offers a rebate program that allows LEA’s to purchase commercial processed

products and receive a rebate after their purchase. After the purchase is final, all that needs to be

completed is the rebate order form. After the order form is completed, send off your order form to the

http://www.dese.mo.gov/divadm/food/RebateForms.htm



address on the form with a copy of your invoice for the products that were purchased. The rebate order

form needs to be mailed to the designated processor within 30 days and then the processor will write a

check for the amount of donated food that was in the product.

Another option that LEA’s have to purchase processed commodities is by using the Net off

Invoicing Program (NOI). By choosing the Indirect Sales Discount Option (“Net Off Invoice” or NOI), you

will immediately receive the commodity discount directly off your distributor

invoice. Commodity discounts will be available on all eligible products as long

as dollars remain in your “commodity bank account”. In addition,

participation is limited to commercial distributors in your area who have

been successfully "certified." The certification process means these

distributors have demonstrated the ability to successfully transmit purchase and invoice data

electronically. This information is available to all interested parties via

http://www.k12foodservice.com/.

Once a month delivery of USDA Donated Foods (DF) to LEAs of Missouri for begins the first full

week of August and will continue through April (9 deliveries). DF's are warehoused and delivered by

Lanter Distribution (Lanter), the current contracted vendor for DESE – SFS.

Please remember:

1. LEAs must accommodate for the delivery of DF any time between 7 a.m. and 4 p.m. Monday through

Friday except on:

a. Labor Day (Sept. 5)

b. Thanksgiving Day, the day before and after Thanksgiving Day (Nov. 23-25)

http://www.k12foodservice.com/



c. Christmas Break

d. Martin Luther King Jr. Day (Jan. 16)

e. Presidents’ Day (Feb. 20)

f. Good Friday

g. Monday after Easter

2. Deliveries are only required to be “tailgate”, meaning that the truck driver only has to bring the

delivered products to the tailgate of the trailer. From there, it is the LEA’s responsibility to get the

delivered products into the LEA.

3. A Notice to Deliver will be provided to each Local Education Agency (LEA) at least 2 business days

prior to the delivery and include type and quantity to be delivered. Drivers will also contact LEA’s in

route to the LEA to ensure LEA’s that they are delivering at a given time.

The current delivery price per case is $1.85. Non-public LEA’s will receive an invoice from Lanter

for the delivery of each case of DF to be paid/submitted back to Lanter Distributing. Delivery of DF to

public LEAs is paid for by DESE – SFS; therefore public LEAs will not receive a bill for the delivery of DF.

However; all processed DFs have a “fee” associated with the production of each case which is invoiced

by each processor and is paid/submitted back to the respective processor for public and non-public

LEAs.

A Bill of Lading accompanies all deliveries by Lanter Distributing and is required to be signed by

the receiving party. Verify the correct items are being delivered (some item numbers are very similar)

and confirm quantities match the Bill of Lading for each item. MARK ANY DISCREPANCIES ON THE BILL

OF LADING BEFORE SIGNING!! DESE – SFS tracks all shorted items and validates all shortages are

resolved by the end of the school year. If shortages are not marked on the Bill of Lading, DESE – SFS has

no documentation for evidence an item was shorted.



For questions regarding the delivery of DF please contact the DESE – SFS office at 573-751-2646.

LEAs may also contact Lanter Distributing with questions and ask for Kim Ackerman, 816-459-4823 or

email: [email protected].

Please feel free to contact our office about any issues you are having with any of the USDA

Foods you receive. We are not on the front line as you are, and we need your input to continue

improving the Donated Food Program here in MO. If you have suggestions, recommendations or best

practices we should know about, send us an Email so we can stay up-to-date

with our customers we strive to serve on a daily basis. Also let us know if there

any topics you would like discussed in an upcoming newsletter and we will do

our best to keep you informed. Our contact information is below; we always

enjoy hearing from you!

DESE – SFS Commodity Section Contacts:

Dudenhoeffer, Andy: (573)-751-7253

[email protected]

Essner, Matthew: (573)-522-1974

[email protected]

Halderman, Amy: (573)-751-2646

[email protected]

Kilson, DeeDee: (573)-751-1706

[email protected]

Open Order Forms should be submitted to:

[email protected]







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